What it takes to purchase a home…tips for planning

What it takes to purchase a home…tips for planning

When thinking about purchasing a new home, it’s always a good idea to factor in the closing costs so you can properly plan and manage your finances. In general, you can expect to pay 2-5% of the purchase price in closing costs in addition to the down payment.

Total costs at closing can typically include the following:

◦ Down Payment 3.5% – 20% of the purchase price depending on a buyer’s qualifications and type of loan.

◦ Earnest Money Deposit (generally 3% of the purchase price) The money put down with a real estate purchase offer – it usually goes into an escrow account upon acceptance of the offer by the seller and is part of the buyer’s total closing costs and down payment.